Are you attempting to sell an empty lot? Do you own raw, vacant, and unused land that can be sold for cash? Get ready as you read about selling vacant land in the US. After reading this guide, you’ll be equipped with tips and a strategy to sell your vacant land. (And you’ll command a fair price too.)
Key Takways:
- Land surveys, boundaries and preparation to sell vacant land
- The delicate balance of zoning laws and legal documentation
- How do you set a fair price for your empty lot or land?
- The art of visual story telling to command a fair price
How to Prepare Your Vacant Land for Buyers (and the Sale)?
What’s the most tricky part about land transactions in the US?
Fewer buyers!
There are just a limited number of buyers in the country who are actively investing in land. The land is a rare commodity, but many people don’t have the resources to convert vacant land into something profitable. Most people just prefer owning a home.
Another limitation is the land’s value. By itself, the land is not valuable. It’s the purpose, development, and use of the land that give it a monetary value. That’s why you have to prepare hard to present your land in the best possible condition.
The land is just an empty slate. You have to fill in the colors.
Preparing Vacant and Raw Land for Sale (Documentation)
First things first. Where is the deed?
You don’t need the actual deed in paper form. You can locate the electronic form from your county’s deed records. There might be a small fee for this service. Collect the deed and study it in detail. Do you have the legal right to sell your land?
If you’re managing this land on behalf of someone, then the person mentioned on the deed must authorize the transfer of ownership. You can use the parcel number (APN) or the address of land to locate the deed.
- Now is also a good time to check for any pending taxes or liens.
- Do you owe taxes on the land? Get your figures straight. The tax will need to be paid before the closing. In the worst-case scenario, there can be a tax lien attached to the land, which will hinder the sale. Again, you can use the parcel number to find your tax bill and make sure to have an updated, correct financial picture regarding your property.
If you can sell the land and the title is clear, we can proceed.
What’s the Legal Description of Your Land?
There is a legal description of your land guiding you about the land boundaries and purpose. If you own a big parcel, you cannot convert it into smaller parcels without first updating the legal description. The description of the land must match the property you’re selling.
If you don’t have the legal description, you will need to order “land survey,” which will take a couple of weeks. A buyer might order a survey before purchasing the land. You can complete the sale quickly if the land survey is done in advance.
Zoning and Deed Restrictions
What can I do with the land? That’s the first thing asked by a potential land investor.
We are all familiar with the zoning laws. You cannot construct a multifamily apartment in an industrial zone. Based on the zoning regulations, you can advertise your land differently. For example:
- Advertise the potential rental income that can be generated from the “x” number of units constructed on your land.
- Market the farmland that provides organic vegetation.
- Can the land be turned into a mobile home park?
- Maybe your land can be converted into an entertainment resort. Do a little research into your land’s potential and see if you can come up with multiple uses. You don’t have to make those changes. Just do the research so your listing can attract more attention.
Talking about the deed restrictions: they force what cannot be done with the land, and that’s inherent in nature. That means the deed restrictions are passed to the next landowner, and you cannot do anything about it. It’s important to research the deed restrictions. A classic example is HOA covenants. You need to follow the HOA rules regardless of the ownership.
How to Prepare Vacant Land for Sale? (Curb Appeal)
Let’s go back to preparing your vacant land for sale. What can you do to present your land in a better condition?
Take care of clearing debris and overgrown bushes. Bring beautiful flower beds to enhance the area. Handle any soil erosion or drainage problems. Create a driveway so vehicles can access your land. You might want to remove stones, bushes, or plants to ensure the plot is accessible.
How to Show the Investment Potential of Your Land?
Selling land is challenging even in the most optimistic times. One cool marketing option is 3D photo rendering. Research the zoning regulations and come up with 5 creative ideas that can use your land in the best fashion. Next, just implement those ideas using 3D image rendering. Build that shopping mall or the apartment building. Develop the road under construction and show the actual potential to investors.
Entice potential clients. People are not interested in land. They want to invest in the potential use of land.
How to Sell Your Raw and Vacant Land?
List your land on all credible property websites like Zillow, Compass, and Landwatch. Maximize your reach. You can also advertise on the MLS, but there can be a fee involved. If you are using an agent to sell your land, then you will get automatic access to those listing websites. You can also use location-specific websites to promote your vacant land.
You can also put “For Sale” signs near the property and also on the nearest busy road. Talk to neighbors who already own some land. Neighbors or local developers might be interested in acquiring your land.
How to Promote Your Raw Land Listing? Reach Out to Other Land Owners
It’s difficult to price land. How will you determine the fair price? More importantly, how will you find a pool of interested buyers?
Landowners understand what it’s like to own and manage vacant land. Do your best to meet landowners who own a similar piece of property. By working with a seasoned investor, you can sell your land quickly. If you find the right buyer, you might be able to close the deal in a few days.
How to Determine Price of a Vacant Parcel?
The price of land is highly influenced by location, local and global market trends, political situation, potential use, and developments. Your prospective buyer wants to invest in the land potential. That’s why land in hilly and mountainous areas doesn’t have a high price. Certain factors have a key influence on land prices. For example:
- Approximity to the city centre or economic hub
- Availability of water, sewer lines and other utilities
- The topography in the area. It affects the overall construction and development costs of the land.
- Permitted use of the land
- Access to transportation
- Verifiable record of ownership
How to Set a Fair Price for Your Land in the US?
Recently Sold Land Transactions in Your Area
How much data do you have about recent land sales in your neighborhood? What’s the quality of that data set? It’s challenging to set a price for your land. You need to look at recent transactions. Even one recent foreclosure can negatively impact the average sold price, so recent comps are not always reliable, especially in land transactions.
Research the developments in your area. What nearby developments will impact your land’s value? What was your initial investment? Have you made any improvements to the land? Take an average return rate and see how much your investment should have grown over the years. After all the research, you want to set a minimum price. That’s the minimum price you’ll accept for your land. Be open to negotiation so you can sell your land for a fair price.
You can also use the “assessed tax value” to see how much your land is valued by the IRS.
If you hire an appraiser, he’ll look at these 4 points:
- Legal access
- Physical access
- Financial value
- Soil productivity, location, drainage facility, and water access
It’s worth investing in a professional appraisal to get an expert opinion of your land’s value.
There is also an easier solution. Talk to 1-800 Land Buyer and get a fair cash offer for your land. We buy land in all states of the US. Our team is open to buying land in all conditions and locations. You can sell your remote, vacant, and raw land to us. Sounds too good to be true?
Just reach out, and we will get to work. Our team would send you a fair cash offer as soon as possible. It might take a couple of days. After sending you the offer, we can set a schedule to close the deal. We can buy land on your timeline. Let us know.